Temasek seeks to sell $3.1 billion stake in Thai teleco Shin Corp
18 Feb 2014
Singapore's sovereign wealth fund Temasek Holdings is seeking to sell its stake worth $3.1 billion in Thai telecom company Shin Corp to Singapore Telecommunications Co (SingTel), Reuters today reported, citing people familiar with the matter.
Temasek, which holds 41.6 per cent stake in Shin Corp through a subsidiary, held talks with SingTel late last year, but those discussions have since stalled amid political unrest in Thailand, the report said.
Temasek had acquired 41.6 per cent of Shin Corp through two subsidiaries in 2006 from the Shinawatra-family for $1.8 billion.
Shin Corp, which was founded in 1983 as Shinawatra Computer by former Thai Prime Minister Thaksin Shinawatra, owns 40.5 per cent of Thailand's biggest mobile telecom company Advanced Info Service (AIS).
SingTel, which holds a 23 per cent stake in AIS, would hold a dominant position in the Thai market if it buys Temasek's stake in Shin Corp.
Temasek also holds a controlling 52 per cent stake in SingTel.
The move by Temasek, which exercised oversight over $170 billion in assets, fell in line with the state investor's plans to consolidate portfolio companies in industry groupings.
According to analysts, this would be its first move toward bringing its telecoms assets under one roof, potentially creating a regional giant, the report added.
.webp)
.webp)
